What is an Ascending Triangle?

What is an Ascending Triangle?

An ascending triangle is a continuation pattern where horizontal resistance caps price while higher lows compress underneath. The structure often resolves with a breakout in the direction of the prior trend.

Characteristics

• Flat ceiling: Multiple touches of the same resistance level build pressure.
• Rising trendline: Each pullback forms a higher low, tightening the range.
• Volume behaviour: Activity often contracts during the build and expands on the breakout.

Trading Ideas

• Trade in the direction of the prevailing trend; ascending triangles in downtrends are less reliable.
• Enter on a close above resistance or during a retest of the breakout level.
• Keep stops below the most recent higher low.
• Monitor for failed breakouts that fall back inside the structure.

Deep Dive

Most edges come from applying clear rules consistently. Expand your analysis beyond a single signal: add context from higher timeframes, recent volatility, session behavior, and catalysts. Define invalidation so a trade becomes obviously wrong fast, keeping losses small while letting winners compound.

Trader Checklist

• Higher‑timeframe bias aligns with the setup.
• Clear level or zone for entry with confluence.
• Pre‑defined stop beyond structure; 2–3R target.
• Session/liquidity supports follow‑through.
• No imminent high‑impact news unless planned.

Strategy Ideas

• Combine structure with momentum confirmation (break/close/acceptance).
• Use partials: scale out at first target; trail remainder.
• Journal results by session and pair to refine timing.

Risks and Limitations

• Thin liquidity widens spreads and distorts signals.
• False breaks around obvious levels—wait for acceptance.
• Overfitting indicators; keep the process simple and robust.

Example

Map bias on the daily chart, mark a zone, and wait on 1H for a close back above with rising participation. Enter on the retest; stop beyond the invalidation wick; target prior swing with room for extension. Record the outcome and context to iterate.